Five things to think about when funding your reno project

Estimated reading time
 5 min

In this article

• Decide what type of work you need to do – is it a whole-house reno or just a small touch-up?
• Build a budget and fund your reno project
• Get the best deal from different trades
   

Got an itch only a big creative project can scratch? Then whip out the overalls and stick a pencil behind your ear because it’s time to jump head-first into renovating your house.

But before you start comparing paint swatches or picking out shiny new appliances, you need to think about how you’re going to fund your renovation extravaganza.

Follow these tips to help you get ready for your home reno – whether it’s a DIY or professional job.

Work out what you actually need to renovate

Renovating a house can breathe new life into a tired space and remind you why you fell in love with the property in the first place. Whether your family is expanding or you’re just sick of the constant drip from your dodgy kitchen tap, if a reno is calling you, start by taking stock of what really needs a makeover.

• Try taking a tour of your home and noting down anything that you think might need repairing or improving.
• Speak to a real estate agent for their expert advice on what will add value to your property.
• Prioritise the parts that will add the most value to your home (or your lifestyle) and get them done first.
• Be realistic – what can you really do yourself, what do you need an expert for, and what can be skipped altogether.

Get smart with your finances

When it comes to saving for a reno, every little bit counts. So, start with our savings booster calculator to see how a few little hacks and swaps can mean big savings (here are a few ideas to get you started).

Next, zoom out and take a look at the bigger picture, by crunching the numbers to see how long it might take you to reach your goal.

You can also cash in on some of the equity in your existing home (if you have it), to pay for cosmetic touch-ups, like switching from floorboards to polished concrete. But if you want to rip out some walls and do a larger renovation, then you might be better off taking out a construction loan.

  Brain hack

it’s good to be conscious of what’s known as the ‘planning fallacy’ – the very human tendency to massively underestimate the time that will be required to complete a task. Make sure you consider what would happen if all timelines got blown out or delayed so you don’t get caught out with an overblown reno budget. The building industry is renowned for cost volatility, with rising material prices, unexpected variations and the impacts of unpredictable weather - a lot can happen between ‘go’ and ‘whoa’.

  Quick tip:

Once you’ve worked out your budget for a reno, good practice is to then set aside an additional amount (10% minimum, 30% realistic) for things you’ve missed or things that don’t go to plan. This is known as “contingency budget” and it can save from getting caught out when unexpected costs inevitably appear mid-build. The beauty of this bonus budget? If all does go to plan you’ve got the money for new furniture ready to go.

Get quotes from your favourite tradies and compare

You’ll rarely need only one type of tradie to bring your reno dreams to life. Whether it’s a plumber or electrician, it’s a good idea to get a few quotes from the trades you need and compare for the best price.

Make sure the quote clearly outlines the services they’re offering. It should also detail the cost of any materials they may need, like paint or parts. You can always ask them to specify (in writing) the cost of post-work repairs if anything were to happen, like getting the plumber to come back for a leaky pipe, or what happens if the project is delayed.

DIY what’s in your wheelhouse

The more you can do yourself, the more you’ll save, it’s as simple as that. But just make sure you’re choosing tasks that fit well within your wheelhouse. Stripping wallpaper, pulling up carpet and painting are all great jobs to get the whole family in on. Get some inspiration on where to target the best budget hacks to save big on your reno, big or small.

If you want to get extra savvy with your DIY skills, watch some online tutorials for heaps of new tricks – think adding extra shelving in your wardrobe or sanding your deck.